The domestic equity benchmarks ended with deep losses on Monday as tensions flared in the Middle East following Iran's attack on Israel. Worries about a wider conflict spooked investors, pushing the Nifty below 22,300. Adding fuel to the fire, hotter-than-expected inflation numbers from the US raised concerns about slowing growth. Small and mid-cap stocks, already facing valuation concerns, were hit especially hard. Oil & gas sector was the only bright spot, as all other sectors bled red. Media, PSU banks, and financial services took a particularly hard hit.

The barometer index, the S&P BSE Sensex slipped 845.12 points or 1.14% to 73,399.78. The Nifty 50 index lost 246.90 points or 1.10% to 22,272.50.

ICICI Bank (down 2.30%), Larsen & Toubro (down 2.10%) and HDFC Bank (down 1.58%) were major drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index lost 1.50%, while the S&P BSE Small-Cap index fell 1.54%.

The market breadth was firmly in favour of sellers. On the BSE, 877 shares rose and 3043 shares fell. A total of 129 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, soared 8.10% to 12.47.

Economy:

India's combined exports (merchandise and services) in March 2024 are estimated at $70.21 billion. This represents a decrease of 3.01% compared to March 2023. Conversely, overall imports in March 2024 are estimated at $73.12 billion, reflecting a decline of 6.11% year-on-year.

For the entire fiscal year 2023-24 (April-March), India's combined exports reached an estimated $776.68 billion. This translates to a marginal growth of 0.04% compared to FY 2022-23. Overall imports for the fiscal year are estimated at $854.80 billion, signifying a decrease of 4.81% year-on-year.

The overall trade deficit is estimated at $78.12 billion, reflecting a significant decline of 35.77% compared to the deficit of $121.62 billion recorded in FY 2022-23.

India's wholesale inflation rate quickened to three-month high of 0.53% in February, mainly driven by food and primary articles, data released by the commerce ministry on April 15 showed. Wholesale Price Index (WPI) inflation stood at 0.2% in February and 1.34% in March 2023.

India's retail inflation eased to 4.85% on an annual basis in March as against 5.09% in the previous month, data showed on Friday. Meanwhile, the industrial production surged to a four-month high of 5.7% in February compared with 4.3% in the previous month.

Monsoon Update:

India is forecast to receive an above-average monsoon this year (June-September) with rainfall predicted to be 106% of the historical average (87 cm). This is according to the Indian Meteorological Department (IMD) who announced this positive outlook on April 15th.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.08% to 7.173 as compared with previous close 7.179.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.4450, compared with its close of 83.3825 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement rose 0.03% to Rs 71,861.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was fell 0.12% to 105.91.

The United States 10-year bond yield rose 1.54% to 4.568.

In the commodities market, Brent crude for June 2024 settlement declined 72 cents or 0.80% to $89.73 a barrel.

Global Markets:

The Dow Jones index futures were up 200 points, indicating a positive opening in the US stocks today.

Most European stocks advanced while Asian stocks mostly declined on Monday as geopolitical tension heightened after Iran's attack on Israel over the weekend.

Traders weighed the impact of Iran's massive drone and missile attacks on Israel. Iran launched more than 300 drones and missiles against military targets in Israel on Saturday. Though significant in scale, the Iranian attack caused little actual damage in Israel.

US stocks tumbled Friday following a mixed start to earnings reporting season.

Stocks in Spotlight:

Tata Consultancy Services (TCS) shed 1.47%. The company announced that its consolidated net profit increased 12.44% to Rs 12,434 crore in Q4 FY24 as compared with Rs 11,058 crore in Q3 FY24. Revenue from operations increased 1.08% QoQ to Rs 61,237 crore in Q4 FY24.

Aster DM Healthcare surged 7.13% after the company said its board has declared a special dividend of Rs 118 per equity share.

Senco Gold surged 19% after the company said that it has achieved 39% year on year (YoY) revenue growth in the quarter ended 31 March 2024. Gold prices continued its northward journey throughout FY 23-24 including in Q4 on account of heightened geopolitical tensions, increased gold buying by central banks across the globe, high FED rates and likely soft landing, INR US$ exchange rates and momentum effect, added the company.

Anand Rathi Wealth rallied 4.39% after its consolidated net profit rose 32.83% to Rs 56.60 crore in Q4 FY24 as against Rs 42.61 crore in Q4 FY23. Total revenue increased 34.08% year on year (YoY) to Rs 197.19 crore in the quarter ended 31 March 2024.

Adani Enterprises declined 1.87%. The company on Friday announced that its wholly owned subsidiary, Adani Global will acquire a 49% stake in Adani Esyasoft Smart Solutions, Abu Dhabi.

Adani Green Energy slipped 3.65%. The power generation company reported a 7% YoY increase in solar portfolio energy sales to 3,066 million units in Q4 FY24 as against 2,872 million units posted in Q4 FY23.

Container Corporation of India (CONCOR) declined 2.08%. The firm reported 11.24% increase in total throughput to 12,44,798 twenty-foot equivalent units (TEUs) in Q4 FY24 as compared with 11,19,034 TEUs recorded in Q4 FY23.

Ambuja Cements shed 0.47%. The company said that it has signed a definitive agreement to acquire My Home Group's 1.5 million tones per annum (MTPA) Cement Grinding Unit in Tuticorin, Tamil Nadu. The acquisition estimated at a total value of Rs. 413.75 Crores through internal accruals will aid in enhancing the coastal footprint across southern markets of Tamil Nadu and Kerela. The total cement capacity of Adani Group stands at 78.9 MTPA,? the company said in a statement.

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